Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Monday, May 26, 2008

Builders, buyers head north to a new corridor

An aerial view of Bandar Tasik Puteri in Rawang.

KLANG Valley's northern corridor, which is still relatively untapped compared with the rapidly developing central and southern corridors, is ripe for more exciting changes and progress, going forward.

The availability of vast land bank and improved infrastructure connectivity have attracted quite a number of developers, including Sime Darby Property Bhd (formerly Guthrie Property Development Holding Bhd), Asia Pacific Land Bhd, KL-Kepong Property Holdings Sdn Bhd (KLK Property) and GuocoLand (M) Bhd (formerly Hong Leong Properties Bhd).

More innovative residential and commercial products that are in the pipeline, including gated residences and lifestyle retail projects, will further spruce up the corridor's landscape.

According to Ho Chin Soon Research Sdn Bhd director Ho Chin Soon, the research company's Locational Centre of Gravity showed there was good growth potential for the various locations in the northern corridor including Selayang, Rawang, Sungei Buloh, Kuang, Guthrie Corridor and Shah Alam North.

“There are large tracts of freehold plantation land in the northern corridor. Besides the Sime Darby group, we have private landowners like Kuala Lumpur Kepong (KLK) group that have sufficient land for development for many, many years to come,” he said.

Ho said since the Klang Valley's growth – including a 5% annual population growth – was continuing unabated, “it would not be wrong to say that the northern corridor would progress more or less in line with Klang Valley's growth.”

“Land prices have not escalated much but we can possibly say there's a 5% per annum increase in values over the last few years.

“Land nearer to the urban areas is priced RM20 to RM25 per sq ft while those in the outskirts is between RM10 and RM15 per sq ft,” Ho said.

Developers are eager to see the implementation of proposed highways, including the Assam-Jawa Latar Expressway linking Rawang to Kuala Selangor and Port Klang and the West Coast Highway that will further enhance the potential of the northern corridor.

New highways

The completion of the 25km Guthrie Corridor Expressway (GCE) that stretches from Bukit Jelutong to Kuang, near Rawang, in 2004 had contributed to the opening up of the northern and western parts of the Klang Valley.

According to Asia Pacific Land Bhd (AP Land) joint managing director Low Su Ming, there has been notable development in the northern corridor in the past decade although the pace was relatively slower compared with the southern and central corridors.

»With escalating prices in other parts of the Klang Valley, demand has begun radiating to the north« LOW SU MING

“With escalating property prices in other parts of the Klang Valley, demand has begun radiating to the north, including Sungai Buloh and Rawang.

“However, there is still a big gap in the prices of properties located here from those in the more developed and sought after areas in the Klang Valley,” Low said.

KL-Kepong Property Development Sdn Bhd (KLK Property) general manager Lim Peng Hong said the GCE and the North-South Expressway had contributed substantially to the success of the various townships in the northern corridor.

This include Sime Darby's Bukit Jelutong, KLK's Desa Coalfields in Sungei Buloh, AP Land's Bandar Tasik Puteri and GuocoLand's Emerald Rawang in Rawang.

The setting up of educational institutions such as Universiti Selangor, Universiti Teknologi Mara II and the new Sungai Buloh Diagnostic Hospital has also attracted property players and investors to the area.

Lower entry cost

“Property projects located within the boundaries of the northern corridor will do well as the scarcity of development land in the Klang Valley and Kuala Lumpur has created the need to build further from the city,” Lim said.

He said escalating costs of construction and scarcity of land, especially in mature areas within the Klang Valley, had contributed to marked increase in property prices of projects with modern living concepts, good facilities and environment.

“The prices of residential properties in the more exclusive addresses in the Klang Valley had made it almost impossible for the average wage earners to acquire them, and they are looking at projects in locations further away from the city.

“With properly planned infrastructure and amenities, projects in the northern corridor will prove to be the next best alternative for many average wage earners,” Lim said.

Although there is still a lot of land available – be it government or privately held, location and accessibility are major considerations that affect the marketability of the projects.

APL's Low said that as land in the central and southern corridors of the Klang Valley was scarce, the price of land in those areas was currently at record highs.

“The lower entry cost of land in the northern corridor is a definite plus. There is certainly potential in the longer term.

“We hope the Government would hasten the approved infrastructure works, which are badly needed in this corridor. When this happens, the growth in this corridor will catch up with the other parts of the Klang Valley.”

She said although places like Rawang and Sungai Buloh had grown substantially, the public transportation system was still lagging and further improvements to the infrastructure network would certainly provide a new growth catalyst for the northern corridor.

“Infrastructure projects, such as the Government’s planned upgrading of certain trunk roads leading into Rawang town and electrified railways under the Ninth Malaysia Plan, will certainly open up more development opportunities and better growth prospects in this corridor,” Low said.

By The Star (by Angie Ng and Leong Hung Yee)

No comments: